A quick look at European markets, and it's clear the European Central Bank meeting has proved a damp squib.

With even ECB head Mario Draghi describing its monthly press conference as "boring", the FTSE 100 has finished virtually unchanged, up just 0.03% at 5827.78. Germany's Dax is down 0.23%, France's Cac is off 0.14%, Italy's FTSE MIB is down 0.15% and Spain's Ibex is 0.18% lower.

Only Wall Street is showing signs of life, with the Dow Jones Industrial Average up 0.63% following better than expected weekly jobless claims ahead of Friday's non-farm payroll numbers.

Back with the ECB, Michael Hewson, senior market analyst at CMC Markets, said:

Anyone looking for anything tangibly new from today’s ECB press conference came away with a feeling of anti-climax and not a little deja-vu with Spain remaining the main area of concern with respect to next steps in the European debt crisis. As expected the ECB left rates unchanged and President Draghi reiterated the conditionality required for countries to take advantage of the outright monetary transactions program.

And with that, we'll end for the evening. Back tomorrow for all the latest developments with Spain, Greece et al, and of course the US non-farm payrolls

5.13pm BST

Greek prime minister Antonis Samaras has said he would like the ECB to roll over Greek bonds, and for the EU governments to allow direct recapitalisation of the country's banks from the ESM bailout fund.

Speaking at the Global Convention, organised in Paris to celebrate the 125th birthday of the International Herald Tribune, he added that he didn't know if the ECB's Draghi or the EU would accept these suggestions. Hmm, I think we might know really.....

He also repeated that Greece leaving the eurozone would be a disaster and said it would cut living standards in the country by 60-70%.

4.31pm BST

The president of the EU received a standing ovation in the Irish parliament today for urging Europe to use the bail out fund to ease burden of the Republic's crippling domestic bank debts, Henry McDonald writes.

Martin Schulz told the Dail the EU must stick to the commitment it gave Taoiseach Enda Kenny back in June that some of the bail out cash should be given to Ireland to fund its bank rescue programme.

Praising the Irish commitment to its austerity programme, the EU president said: “You took the burden on your shoulders to avoid the crash of the system of all the other countries, also my country."

Schulz called on Germans and other Europeans to show "solidarity" with the Irish government and its people.

Earlier this autumn the three foreign ministers of Germany, Holland and Finland had cast doubts on Enda Kenny's claim that the EU bail out programme would include cash to help Ireland shore up its banks.

Today's address in the Dail is a significant boost for Kenny as he battles domestic opponents at home who had charged that he had exaggerated European offers of support regarding bank debt.

Speaking outside government buildings in Dublin this afternoon Kenny said the bank deal for Ireland was back on although he admitted it was not clear if it could be done before the Irish budget in December, which is expected to herald a fresh round of unpopular spending cuts in areas like health and welfare.

Updated at 4.37pm BST

4.25pm BST

And they are queuing up to knock Spain's latest budget.

Worryingly the first dissenter is the new head of Spain's central bank. According to Reuters, Luis Maria Linde told a parliamentary budget committee the government's proposed 2013 budget was based on over-rosy forecasts for economic growth and tax revenue.

"This outlook ... is certainly optimistic in comparison with the outlook shared by the majority of international organisations and analysts," he said.

Linde said the government, which has already hiked taxes and cut tens of billions of euros in costs, should consider further steps this year to meet next year's deficit target of 4.5 percent of gross domestic product agreed with the European Union.

Ransquawk said the EU also doubted the viability of the budget...

Updated at 4.38pm BST

3.53pm BST

Greece is in the firing line from the Germans again.

German finance minister Wolfgang Schaeuble has said all the crisis countries in the eurozone have made significant progress - except Greece. According to Reuters, he said Spain and Italy had made "grand achievements."

And - perhaps rather pointedly - he said when countries make the necessary reform efforts, they can be granted more time. Greece, of course, has been asking for more time to implement its budget cuts.

Updated at 4.38pm BST

3.42pm BST

Spain has not requested any financial support from the IMF, according to the latest snaps on Reuters.

But given the country's government is holding off on asking for a bailout following the recent falls in its bond yields - otherwise known as playing chicken with the markets - this is hardly a surprise.

An IMF mission is also due to talk to the Spanish government between 15 and 26 October over monitoring its banking sector, says Reuters, with a technical expert already in Madrid.

And to finish this IMF roundup, a spokesman said there was no timetable for the conclusion of Greek programme talks. So, after the US election then?

Updated at 4.39pm BST

3.29pm BST

As expected Portugal's government easily defeated a vote of no confidence in the wake of Wednesday's announcement of new tax increases to meet its bailout terms.

The main socialist opposition party abstained from the vote but anti-austerity critics called the tax hikes "daylight robbery", according to Reuters.

The ECB has done all it can at the moment, is the conclusion drawn from its press conference earlier by Carsten Brzeski of ING Bank:

All in all, the ECB realises that there is hardly anything they can do at this juncture. With the OMT, the ECB has tackled and exorcised fears of an imminent Eurozone break-up. More monetary stimulus, standard or non-standard, to support growth is still in the offing but the fundamental work has to be done by governments. For the time being, the ECB can lean back, watch and twiddle thumbs.

3.19pm BST

US factory orders fall but jobless claims better than forecast

With Barack Obama widely perceived to have struggled in the first debate with challenger Mitt Romney, one of the main issues was the economy.

So the president probably didn't need to see US factory orders record their largest fall since January 2009 in August. New orders for manufactured goods fell by 5.2% after a 2.8% rise in July, but on the positive side, the decline was better than the 5.8% fall predicted by economists.

And excluding a drop in demand for transportation equipment, they edged up 0.7%.

The main data on the agenda this week however comes tomorrow with the non-farm payroll numbers. On that basis there was slightly brighter news on the jobs front, with weekly jobless claims rising to 367,000, a shade less than expectations.

Non-farms are expected to show a 115,000 rise after August's increase of 96,000, which would certainly be helpful to Obama.

2.59pm BST

Back to Greece, where our correspondent Helena Smith reports there is considerable concern in the government over today’s clashes at the defence ministry. Officials say prime minister Antonis Samaras, who is in Paris attending a conference, has voiced concerns over the increasingly explosive mood in the crisis-hit country. Helena writes:

Although demonstrators have now left the defence ministry, the clashes earlier today within the confines of the building have caused “grave concern” with prime minister Antonis Samaras demanding he be kept informed of events “minute by minute.” Aides say the conservative leader has expressed disquiet that the protesting dockworkers managed to break into the premises of the defence ministry, supposedly one of Greece’s most guarded buildings. “Questions are also being asked as to why it took riot police so long to get there,” said one insider.

Workers of the shipyard protest outside the police headquarters demanding the release of their colleagues arrested this morning. Photograph: ORESTIS PANAGIOTOU/EPA

By lunchtime some 110 shipyard workers had been arrested, according to police. “Workers at the shipyards are in a state of desperation,” said Kostas Stefanopoulos who heads the union of dockworkers. “They’ve not been paid for six months. Many have seen their families disintegrate. Others are at risk of losing their homes because of debt. We have nowhere to go. We don’t know what else to do.”

With the government poised to pass the toughest austerity measures since the debt crisis erupted in Athens almost three years ago, the increasingly explosive mood among Greeks at large has triggered mounting fears in the ruling coalition. Officials are openly worried about social unrest threatening the government’s survival if ordinary Greeks, who have already borne the brunt of austerity measures, are perceived to be pushed too far. “That’s why it is so important that we are seen to get the balance right,” said an official at the finance ministry referring to the €13.5bn package of budget cuts the debt-stricken country must apply in return for further rescue funds.

Negotiations with envoys representing Greece’s international creditors continue today with state-run media reporting that the finance minister, Yiannis Stournaras, has just begun another round of talk with visiting inspectors from the EU, ECB and IMF - the so-called troika - in the hope of reaching a “compromise” before a crucial meeting of euro zone finance ministers on October 8.

And with that, I'm handing over to my colleague Nick Fletcher.

Updated at 3.08pm BST

2.43pm BST

Most controversial moment of the press conference, the Dow Jones journalist wore a hoodie. It was, apparently, a protest.

Matina Stevis (@MatinaStevis)

Because my colleague Tom, with the hoody, is a legend, he says: It was a protest for Europe's unemployed youth. #nuffsaid

I cannot comment. It is very much the decision whether to start this process is entirely in the hand of the governments. The ECB has done what is possible. The initiative is in the hand of governments.

ECB governing council member Marko Kranjec said it was much too early to say anything about whether Slovenia will need a bailout. He says spreads in the capital markets don't reflect the fundamental characteristics of Slovenia's economy.

2.11pm BST

Draghi notes the brighter spots in the eurozone. Says Spain is getting better. Journalist from German newspaper disagrees.

Draghi says we have to express a note of caution here. Volatility is still relatively high. Governments will have to persevere with reform on all fronts.

What is an acceptable level of fragmentation in the eurozone? he is asked. It becomes unacceptable when signleness of European monetary policy in the eurozone is put into question, says Draghi.

2.04pm BST

Portugal is example of significant progress, Draghi says. The reform agenda is in place.

The OMT would not apply to a country under a bailout programme until that country has come back to the debt markets, with "full market access". Portugal does not have full market access, despite succeeding with a bond issue yesterday.

2.02pm BST

He's being asked if Spain's current reform programme would be enough for the ECB to intervene in bond markets.

Draghi says there is a tendency to identify conditionality with harsh conditions, but that is not necessarily the case. Is it enough? He says that is up to the Spanish government to decide. He repeats that Spain would have to request a bailout if the ECB were to intervene. The ECB would actively seek IMF involvement in the process (to decide conditions etc).

1.58pm BST

Draghi says Spain is one place where significant progress has taken place but significant challenges remain.

1.56pm BST

Draghi says non-standard measures (ie buying bonds) are being designed and implemented when the standard ones (ie cutting rates) are not effective.

That sounds like the ECB will not be cutting rates any time soon.

1.55pm BST

Draghi says he is concerned about youth unemployment, it is an incredible waste of resources, can be addressed by reforming dual nature of labour markets.

1.53pm BST

Draghi says conditionality is a way of enhancing the credit of the country that is the object of the OMT. i.e. it is in the interests of the ECB to make a country whose bonds it buys meet certain conditions, because that will make them more likely to pay back their bonds.

Conditionality also protects the independence of the ECB.

Updated at 1.54pm BST

1.47pm BST

Q&A now. There was no discussion about rates, the decision was unanimous.

Many ECB members have shown an open mind to publishing minutes of ECB meetings, but Draghi says it is a very complex process.

There may be some benefit from having greater transparency. At the same time we have to value and assess what it means in our specific context.

1.45pm BST

We have a new acronym! The ESSM - European Single Supervisory Mechanism. That's the single banking supervisor for the whole of the eurozone. Draghi welcomes it, apparently.

1.43pm BST

Draghi says noticeable progress is being made in the correction of unit labour costs at the countries worst affected by the crisis.

Draghi says current inflationary levels should be transitory, no second round effects. We must monitor closely price, cost, and wage developments.

1.39pm BST

Draghi says economic indicators point to a weak economy in the third quarter. (Most economists are expecting the eurozone to fall into recession). He says the latest inflation data is higher than expected.

1.37pm BST

Draghi says eurozone risks are still on the "downside," according to the ECB, especially ongoing tensions in some markets which could spill over into the real economy

Updated at 1.38pm BST

1.37pm BST

Draghi adds that OMTs will not take place while a programme is under review, i.e. if a country does not stick to its conditions. Once programme compliance has been assured, OMTs will resume.

1.36pm BST

Draghi says, owing to high energy prices and increases in indirect taxes in some countries, inflation is expected to remain above 2% throughout this year, but then fall.

Economic growth is expected to remain weak in the eurozone due to ongoing financial tension in fin markets. And to recover only gradually thereafter.

We are strictly within our mandate, in undertaking the bond-buying via OMTs.

The ECB is ready to undertake OMTs when the prerequisites are in place. It will exit from them once objectives have been met, or if a country fails to meet condtions.

1.30pm BST

The ECB meeting and press conference is taking place today in Ljubljana in Slovenia. You can watch it here (currently showing views of journalists assembling).

ECB president Mario Draghi yesterday met the president of Slovenia to discuss the growing crisis in the country. ... Draghi's arrived.

Nicolas Sarkozy has been left with "no choice" but to make an audacious bid to become president of France for the second time in five years' time, it was claimed today.

Bruno Le Maire, his former agriculture minister, is said to have heard the former head of state claim “moral” reasons for returning.

This is despite the fact that the 57-year-old conservative, who lost the presidential election in May after five years in power, is facing corruption enquiries in France.

Former French president Nicolas Sarkozy. Photograph: KeystoneUSA-ZUMA/Rex Features

1.16pm BST

Fed minutes preview

Minutes from the Federal Reserve's meeting in September should give an idea of the range of opinions among the members of the committee and the implications for policy in the medium term. (Thanks to Ransquawk's preview).

The meeting resulted in the announcement from the Fed that it would extend its QE programme and buy $40bn of mortgage-backed securities every month.

The result of the vote is already known, with 11-1 voting in favour of the move. Markets will be looking to see if any other policy measures were considered.

1.05pm BST

There's more scepticism about the apparent European plan to provide first-loss insurance for Spanish bonds (see below), from the FT markets editor.

Chris Adams (@chrisadamsmkts)

So, they want to bail out Spain with 50bn euros instead of 300bn euros. I have a feeling the markets won't buy this

Under the scheme, which officials say is under consideration in Madrid, Paris, Berlin and Rome, the eurozone's new permanent rescue fund (ESM) would guarantee the first 20 to 30 percent of each new bond issued by Spain.

They report that the scheme was designed to maintain Spanish access to capital markets and minimize the cost to European taxpayers, citing European sources

One senior European source said the plan could cost about 50 billion euros ($64.5 billion) for a year. It would enable Spain to cover its full funding needs and trigger European Central bank buying of Spanish bonds in the secondary market.

Trader website zerohedge is not convinced.

zerohedge (@zerohedge)

Reuters' Julien Toyer is all about swinging and missing in the roomerz department these days

More breaking non-news: the European Central Bank left rates on hold at 0.75%.

Updated at 12.50pm BST

12.45pm BST

The eurozone is considering first-loss insurance for Spanish bonds under an assistance programme, Reuters is reporting, citing unnamed sources.

The scheme could cost the EU rescue funds about €50bn for one year, and enable Spain to meet its full borrowing needs.

It said no decision has yet been taken on the bond insurance scheme, which may be "several weeks away".

We'll write more on that when we have it.

Updated at 12.48pm BST

12.42pm BST

Philip Shaw at Investec says the decision by the Bank of England (see below) was to be expected, but says next month’s decision will take place against a background which might make members think a bit harder as to whether more QE is justified.

For example Q3 GDP, released a fortnight earlier, should show a solid rebound of perhaps 0.7%, following three consecutive quarters of contraction. This would largely reflect the unwinding of Jubilee Bank Holiday related distortions, and hence the committee could argue that growth looking forward is likely to be considerably slower. But at the same time its new inflation projections, due for publication in the Quarterly Inflation Report the following week, may well incorporate higher inflation pressures from higher food and oil prices and the near tripling of university tuition fees.

On balance we judge that the committee is still likely to argue that inflation will be below the 2% target in two to three years’ time, thus making a case for a further £50bn of asset purchases. However this could be a marginal decision and the MPC might decide to halt the QE programme at least for the time being, especially if it is optimistic over the impact of the Funding for Lending Scheme.

12.00pm BST

Breaking (non-)news: The Bank of England has left rates on hold at 0.5%, and left the size of the quantitative easing programme unchanged at £375bn.

11.54am BST

Portuguese prime minister fights no-confidence motion

Portugal's prime minister Pedro Passos Coelho has defended his government's policy of strict austerity in parliament, after two small left-wing parties fielded a no-confidence motion in the government.

He said Portugal has to stay the course of austerity or risk losing the credibility it has gained in implementing the reforms requested by the troika of the EU, the ECB and the IMF. He said:

Had the policy not been up to the task, lenders would not have given us more time [to meet bailout targets].

There are further developments in Greece, where our correspondent Helena Smith says state-run television is confirming the casualties following clashes between Greek shipyard workers and riot police at Athens’ defence ministry this morning. She writes:

The Greek state-owned TV channel ERT is reporting that at least two people were injured after shipyard workers broke their way into the country’s defence ministry protesting they had not been paid for the past six months. TV stations showed footage of riot police responding with tear gas when the demonstrators, forcing their way past gated guard posts, stormed onto the premises – highlighting popular fury over new austerity measures the EU and IMF are demanding. The Ta Nea newspaper said 70 had been detained.

The dockworkers, all from the Skaramangas shipyard outside Athens, could be seen making their way up the stairs to the entrance of the building before being repulsed. Government officials said they demanded to meet the defence minister, Panos Panagiotopoulous, to air grievances about not being remunerated for work conducted on naval contracts requested by the Greek state. With public coffers almost empty the government has pared back paying contractors – a step it has said it will rectify when the country receives its next tranche of aid from international creditors. Nearly €8bn of the €31.5bn Athens is due to receive will go towards paying outstanding bills owed to suppliers, according to the finance ministry.

But the rescue loans require Greece adopting a controversial €13.5bn package of spending cuts and tax increases first – that critics say will only exacerbate the worst recession to hit Greece since the second world war.

Yiannis Papagopoulos, who heads the confederation of Greek workers, the country’s biggest labour force, rushed to the scene. “I am here,” he said. “It is outrageous that workers who are simply trying to claim their rights should be arrested. Thousands of Greek families have been pushed into wretchedness as a result of workers having their rights abused and trampled on.”

11.31am BST

Over in Dublin, Henry McDonald reports that the president of the European Parliament, Martin Schulz, has backed Enda Kenny's claim that Europe promised Ireland it would use the bailout fund to help the Republic reduce its banking debts.

Schulz said he believes the EU should keep promises made to the Taoiseach and the Irish government regarding bank debt back in June.

Kenny's assertion that the EU bail out fund would help Ireland and its bank debts was thrown into doubt last week by three EU finance minisers. The German, Finnish and Dutch finance ministers said the bail out fund should not be used to deal with a country's domestic banking debts from the recent past.

Speaking before he addresses the Dail (Irish parliament) later today Schulz called on his fellow EU states to fulfill their promise made back in June.

He has pointed out that Ireland is facing a lot of problems to generate economic growth, and the relief that was promised on banking debt should be followed through.

"In the combination of all these problems it's quite clear that we must give more time, more flexibility to the country," he said.

"This is my position and the position also of the overwhelming majority of members of the European Parliament.

"Taoiseach Kenny asked nothing else than a certain kind of relief - that was guaranteed to him and I think the European Union should stick to the promise given to Ireland in June."

11.25am BST

Talking of Herman Van Rompuy, the EU Council president provided one of the more lyrical tweets this morning.

There is a draft EU council paper that EU leaders will discuss at a meeting in Brussels in mid-October. The FAZ writes that there is no detail on how big the budget should be and how it will be funded. Sources in Brussels say it could be funded from national contributions - like the lion's share of the EU budget - or the eurozone could be entitled to a part of certain national taxes. The draft paper insists on strong democratic controls, which implies that the eurozone will get its own parliament, according to the FAZ.

The newspaper reckons that the draft paper will be well received by the German government, which prefers the creation of a budget for the eurozone to eurobonds. Incentives can be created - such as funding unemployment programmes - to motivate countries to carry out reforms. This is not possible within the EU budget which does not set any conditions. The EU Commission is also supportive.

In addition, the paper drafted by EU Council president Herman Van Rompuy wants all eurozone member states to be contractually obliged to carry out reforms - at the moment, that applies only to those crisis-struck countries that have received EU aid. Van Rompuy wants to ensure that countries' economic policies are better co-ordinated, the newspaper writes.

Thanks to one of our readers, ballymichael, for the heads up. He writes in the comments below:

It's somewhat depressing that not even the FT appears to cover it. The EU has always, in the past, got its budget through tortuous negotiations in Parliament and Commission, that are gone over line-by-line by the member-states in the European Council. It takes ages, but its a fundamental basis of the european design, that the EU has no revenue-raising ability of its own.

I have no idea if it will happen, or not. It tallies, of course, with the idea of a "european finance minister". But it's a huge change, if it should happen. And nobody in the UK media even reports it?

11.11am BST

ECB preview

Bank of America Merrill Lynch economist Laurence Boone says the ECB should give some idea of what it deems to be appropriate yields, and how it can buy one to three-year bonds without distorting the bond market. (By stating that it will buy one to three-year debt, the ECB is in danger of pushing countries into raising only short-term debt.) Boone writes:

An alternative would be for the ECB to request an issuance program as part of a Memorandum of Understanding, thus ensuring that the country preserves the duration of its debt and does not focus issuance in the 1-3 year sector.

Analysts are largely agreed that the ECB is unlikely to cut rates at this meeting but it could hint at future rate cuts. Citi economist Jürgen Michels writes:

In the press conference, ECB President Mario Draghi probably will highlight downside risks for the economic outlook. In our view, this would suggest that the ECB is leaving the door open for a reduction in the refi rate in the fourth quarter, despite elevated inflation rates.

He notes that the ECB could announce a change of policy with regards to the publication of minutes from its meetings. Several members of the ECB governing council have expressed their support for the central bank to publish its minutes, like the Bank of England and Federal Reserve already do.

10.43am BST

Spain's bond auction went well because investors are over-optimistic, writes Nicholas Spiro of Spiro Sovereign Strategy.

Markets continue to be less concerned about the enduring game of chicken between the ECB and Spain and are instead taking comfort from the expectation that Madrid will shortly seek a sovereign bailout. But just as investors paid insufficient attention to the politics of bond-buying conditionality, they're now at risk of taking an overly optimistic view of the effectiveness of the OMT [bond-buying] programme if and when it's launched. Indeed the gap between what the markets expect the ECB to do in Spain (and possibly Italy) and what it can realistically accomplish is growing with each passing day.

Spain's debt market is currently in a state of limbo. It is being propped up by an ECB-backed bond-buying scheme that has yet to be put into practice. The prevailing view seems to be that if Spain does not seek a sovereign bail-out by the end of October, then sentiment will turn sharply.

10.26am BST

Back to Athens, where Theodora Oikonomides says 70 people were arrested following the dock workers' protest at the Ministry of Defence.

The Cypriot government will seek an €11bn ($14.2bn) bailout, 62% of gross domestic product, to recapitalize its banks and pay its bills, according to three people with direct knowledge of the matter.

The country’s banks, which lost more than 4 billion euros in Greece’s debt restructuring earlier this year, need €5bn of fresh capital, according to Finance Minister Vassos Shiarly, the people said. The so-called troika that oversees euro-area rescues puts Cypriot banks’ recapitalization needs at about €10bn, the people cited Shiarly as saying.

A Finance Ministry spokesman declined to comment immediately on the information when contacted by Bloomberg News.

Sticking with the debt markets, France has sold €7.97bn of 2018, 2022, and 2041 bonds.

[Adding detail] Yields on bonds that mature in 2022 came in at 2.28%, compared with 2.21% at the last auction on September 6.

Annalisa Piazza at Newedge Strategy said there was "super strong demand" for the bonds.

Updated at 10.50am BST

10.05am BST

Overall, the Spanish bond auction is considered to be a success, with yields falling on the expectation the country will be forced to seek a bailout soon.

Yields on the two and five year bonds came down compared with auctions in July. Yields on the three-year bond ticked up. However, that was compared with the last auction in September, which took place after the ECB announced the bond-buying scheme, so investors were already betting on European support, driving prices up and bond yields down.

Updated at 10.10am BST

9.56am BST

Spain's borrowing costs come down

Spain has got its bond auction away and yields, for the most part, have come down.

The five-year bond had an average yield of 4.77%, compared with 6.46% at the last auction.

The two-year bond had an average yield of 3.28%, compared with 5.2% at the last auction.

Only the three-bond saw yields tick up, with an average yield of 3.96%, compared with 3.84% last time.

Overall, it sold a total of €3.99bn of government bonds, so right at the top of the €3bn-€4bn range.

9.45am BST

Markets turn negative

European stock markets have turned negative, wiping out early morning gains. Traders cite a combination of factors driving shares lower: from a lack of progress in talks between Greece and the troika, and tensions in the Middle East.

UK FTSE 100: down 0.2%

France CAC 40: down 0.24%

Germany Dax: down 0.22%

9.41am BST

Reports of yet more protests in Greece from Yiannis Mouzakis.

Yiannis Mouzakis (@YiannisMouzakis)

#Greece hospital staff protesting at health ministry over deterioration of health services. How far is troika planning to push this society?

Ireland touted as first eurozone success story

Berenberg Bank is hailing Ireland as the first success story among the eurozone countries to undergo bailouts.

Holger Schmieding notes that Ireland was the first country to follow Greece into a sovereign bailout in November 2010 and may also be the first to emerge from the ranks of the crisis countries now. He writes:

Irish sovereign yields have dropped into sustainable territory. The benchmark nine-year yield is almost the same as Italy’s. At 1.5%, Ireland’s two-year yield is the lowest of any crisis country. The country has already managed to return to markets in January 2012 by extending bond maturities with a bond swap and sold new government bonds in July.

The Irish may disagree with that assessment. Yesterday, the country's Central Statistics Office released figures showing the jobless rate in Ireland stayed stubbornly high, at 14.8% in September. Only 400 people left the dole queues over the month according to the CSO.

Updated at 9.05am BST

8.51am BST

Quick look at the markets, which opened higher this morning.

UK FTSE 100: up 0.2%

France CAC 40: up 0.11%

Germany DAX: up 0.36%

Spain IBEX: up 0.6%

Italy FTSE MIB: up 0.26%

Mike van Dulken, Head of Research at Accendo Markets, said the FTSE could be heading back to mid-September highs.

Colour from ECB and Fed today could help uptrend continue, as could more positive data from US tomorrow (Non-Farm Payrolls). In a world of grim macro data and stimulus-hopes, however, ‘good data is good, but bad data is gooder’. More bad news from China and more extra stimulus could help us higher into year-end, as could traditional Santa rally.

8.42am BST

UK house prices fall in September

Back in the UK, house prices fell for the third month in a row in September, according to Halifax.

Prices dropped 0.4% over the month, and were 1.2% lower than in September last year. Martin Ellis, Halifax's housing economist, said:

The generally weak economic climate remains a significant constraint on housing demand. The relatively low level of mortgage payments in relation to income, however, continues to provide support for house prices. We expect house prices to be broadly unchanged over the rest of this year and into 2013.

8.37am BST

Swiss industrial production rose 4.6% in the second quarter, compared with the same period last year. But new orders, which give an idea of future production, dipped 1.1%.

Melted gold flows out of a smelter at Argor-Heraeus in the southern Swiss town of Mendrisio. Photograph: ARND WIEGMANN/REUTERS

8.29am BST

Draghi's short fuse aside, most people admit the press conference is unlikely to be ground-breaking. The FT's currencies correspodent notes...

Alice Ross (@aliceemross)

This comment from Commerzbank could sum up the day: "Admittedly the ECB press conference will not be as exciting as last time round."

Looking ahead to the central bank decisions. The general consensus is that the Bank of England will keep rates on hold at 0.5%, and leave the size of the quantitative easing programme at £375bn. While the ECB is expected to leave rates at 0.75%.

But markets will be hanging on the words of president Mario Draghi in the following press conference. Marc Ostwald of Monument Securities writes:

The difficult question for Draghi to answer would be what he / the ECB think of Spain's current tactics of playing cat and mouse on the whole issue of seeking assistance. The wisdom of his tactic of isolating Weidmann and the Bundesbank, and the fact that the legality of the OMT [bond-buying] programme appears still to be being questioned are also likely to yield some interesting questions, and may well test Draghi's rather 'short fuse' if previous press conference performances are anything to go by.

She said the ECB decision to start buying the bonds of crisis-hit states was "fundamental”. And she called for eurozone governments to act fast and start implementing the mechanisms to resolve the crisis.

7.54am BST

Today's agenda

Coming up...

• Spain to sell €3bn-€4bn of 2-year, 3-year and 5-year bonds: 9.30am

• France to sell €7bn-€8bn of 6-year, 10-year and 29-year bonds: 10am

• UK Bank of England interest rate decision: 12pm

• ECB interest rate decision: 12.45pm

• ECB press conference: 1.30pm

• US jobless claims: 1.30pm

• US factory orders for August: 3pm

• US Federal Reserve minutes from September meeting: 7pm

7.47am BST

Good morning and welcome to our rolling coverage of the eurozone crisis. The central banks will be in focus today, with both the Bank of England and the European Central Bank due to announce their decisions on interest rates and any other stimulus programmes this morning.

The ECB will hold a press conference to discuss its decision at 1.30pm (London time), where president Mario Draghi could give some more detail on the bond-buying programme. And later this evening, the US Federal Reserve will publish the minutes from its September rate setting meeting, when it announced QE3.

Elsewhere, there are some key Spanish debt auctions this morning. And this afternoon, we'll get some data out of the US, showing jobless claims and factory orders.